Tuesday, July 22, 2008

How To Find A Solar System Contractor

Finding a contractor to install a photovoltaic solar system on your home is not unlike finding any other specialist to complete a home improvement, provided the contractor has solar savvy.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - With city, state and federal initiatives shouting 'solar!' from the rooftops, finding competent solar equipment installers is paramount.

Solar and other renewable energy rebates and initiatives from the federal government down to city jurisdictions are prompting more contractors to hang a "solar installer" shingle, take to rooftops and cash in on the demand.

It's relatively simple to install and maintain a $30,000 flush-mounted, rooftop, 320-square-foot, PV array efficiently generating 3 kilowatts -- enough power to meet the needs of a 2,500 square foot home.

Simple that is, provided the PV panel installer is experienced in the task at hand.

As with hiring any professional, a good start to finding a solar contractor is to seek referrals from family, friends, neighbors, co-workers and others you trust who also recently purchased a system with which they are satisfied.

The referrals should be to licensed contractors or, better yet, licensed solar contractors who work in your area. Contractors typically obtain a license by proving their skills through education or training, testing, in-the-field experience or some combination of all those efforts.

More specifically, solar contractors are licensed after meeting requirements specific to the specialty.
In some states, designated solar contractors are licensed to perform solar energy work and only other building or construction work necessary to install an active solar system.

The licensing process typically also comes with continuing education services to keep contractors current on techniques, codes and the like. It also includes a regulatory system that helps weed out the bad apples. Consumers get an official agency where they can check the record of contractors, lodge complaints and seek redress for problems.

Truly professional contractors also won't work without a permit, which means the local building inspector will examine the work for compliance with current building codes. Avoid any contractor who attempts to circumvent the permit process.

Most states don't have regulations for a designated "solar contractor," but each state's renewable energy incentive program can help.

The Database of State Incentives for Renewable Energy offers a clickable-map data base of federal, state and local renewable energy programs, each of which can help you find qualified contractors and educational and financing information for consumers.

Even where there's no "solar contractor" license category, incentive programs typically come with state-registered or program-registered contractors and or approved solar and other renewable energy systems.

You can also tap solar energy trade groups to find contractors, especially in areas where they aren't regulated. Trade groups typically come with a code of ethics, training requirements and a network of product research, development and educational services for its members.

Home owners considering hiring a professional solar system installer should also get schooled in solar technology to be better equipped to interview prospective contractors.

Select a contractor who has years of experience installing grid-connected systems and who isn't afraid to refer you to satisfied customers.

The contractor should also have site savvy -- clear, unobstructed access to the sun is crucial. The contractor should also be able to help you decide what size system you need to generate all the power necessary for your home or just a portion. It's up to you not to let the contractor sell you more power than you need.

The incentive programs and utilities can help you calculate how much of a rooftop array you really need based on past energy use.

The contractor should also be familiar with special features your system may need including an inverter necessary to change the direct current (DC) power from the solar panels into alternating current (AC) electricity to power your electrical devices and to be compatible with the electric grid. Batteries, which increase your cost, provide back-up and storage power for your home during grid outages and gray days.

Each incentive program explains the local utility connection requirements including which utilities will buy excess power and which will let you pump juice back into the grid without reimbursing you, but the contractor also should be familiar with grid connections, metering and what happens to excess power.

Finally, get several bids and make sure the bids are for the identical solar system.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's where all the news really hits home.


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New Fed Rules Effectively Codify Mortgage Squeeze

New federal rules to protect consumers from bad loans do little more than codify steps lenders are already taking, but borrowers may feel a tighter pinch.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Paramount in new federal regulations approved to foster more responsible mortgage lending, are the implications for consumers shopping for a home loan.

The Federal Reserve Board's new rule amends the "Truth In Lending Act," Regulation Z under the "Home Ownership and Equity Protection Act (HOEPA)".

HOEPA was originally passed in 1994 to target abusive practices in home equity lending. The Fed's new move extends protections to home purchase loans.

Critics complain the rule is long over due because unfair, abusive and deceptive home mortgage lending practices get much of the blame for the current housing crisis that has already put millions of properties in foreclosure and former owners on the street.

Also, most lenders long ago curtailed many of the practices now forbidden by the new regulations, critics say. The horse is already out of the barn, so to speak, and the new regulations will do little to corral the market's downward stampede.

However, the new rules should help prevent future runs on bad loans by helping remove them from the market. Perhaps more important, key provisions in the new rules will give consumers cause to pause before shopping for a mortgage.

Effective October 1, 2009, the new rule's four key provisions (along with how each will impact consumers), for a newly defined, but yet to be detailed category of "higher-priced mortgage loans," include protections that will:

• Prohibit a lender from making a loan without regard to borrowers' ability to repay the loan from income and assets other than the home's value.

This forces lenders to more closely scrutinize a borrower's debt-to-income ratio, looking for less debt, more income and savings, larger down payments and other liquid assets the borrower can fall back on. Consumers may have to take more time saving and paying off debt before buying a home.

• Require creditors to verify the income and assets they rely upon to determine repayment ability.

This provision will make it especially tough for home-based business owners, self-employed people, contract workers and others who don't get a regular pay stub. Lenders were already asking many of these borrowers for a CPA's or other tax professional's certified profit-and-loss statement to reveal income viability.

• Ban any prepayment penalty if the payment can change in the initial four years. For other higher-priced loans, a prepayment penalty period cannot last for more than two years.

Without this lender risk-reducing tool they are more likely to offer a narrower variety of loans, forcing some consumers out of the market and more of them to spend more time shopping around. Shopping around, of course, is a smart practice.

• Require creditors to establish escrow accounts for property taxes and homeowner's insurance for all first-lien mortgage loans.

This means borrowers will have to figure on paying more each month than just the home loan's principle and interest (or interest only, where available). This is actually a useful tool for borrowers, especially those who procrastinate and gamble they'll have the lump sum cash when the insurance premium or property tax comes due. Financial counselors have always advised spreading out the cost of insurance and taxes over 12 monthly payments is much easier to fit into a household budget than the lump sum risk.

In addition to rules for higher priced home loans other rules include:

• Creditors and mortgage brokers are prohibited from coercing a real estate appraiser to misstate a home's value.

• Companies that service mortgage loans are prohibited from engaging in certain practices, such as pyramiding late fees. Servicers are also required to credit consumers' loan payments as of the date of receipt.

• Creditors must provide a good faith estimate of the loan costs, including a schedule of payments, within three days after a consumer applies for any mortgage loan secured by a consumer's principal dwelling, such as a home improvement loan or a loan to refinance an existing loan. Currently, early cost estimates are only required for home-purchase loans.

• The rules also specifically outlaws seven deceptive and misleading advertising and requires more extensive information about rates, monthly payments and other loan features.

© 2008 DeadlineNews.Com

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Get news that really hits home for your Web site or blog from DeadlineNews.Com.

Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's where all the news really hits home.


DeadlineNews.Com's Editorial Content Is Intellectual Property • Unauthorized Use Is A Federal Crime


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